For the benefit of taxpayers, the Income Tax Department is pre-filling several columns on the Income Tax Return Form this year. In such a situation, if you are preparing to file your income tax return, then you will get information about TDS, salary details etc. However, despite this, you will need to fill in many details yourself.
According to the Income Tax Department, taxpayers will have to fill out the income details from capital gains, dividends and interest this year. This will open a pop-up page. In it, the taxpayer is required to provide information on the proceeds from this material. If the taxpayer thinks the information provided in the pre-filled column is incorrect, the concerned department may be asked to correct it.
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If the taxpayer thinks the interest income information provided on the form is incorrect, he may inform the bank in this regard. The bank re-calculates and gives information. After that he can improve the farm. Experts believe that pre-filled information helps taxpayers file an ITR, but taxpayers need to verify the information before submitting an ITR.
Responsible for informing the Bank, Fund House
According to the CBDT, it is the responsibility of banks, post offices, mutual fund houses, registrars, bond issuers and other financial institutions to pass this information on to all taxpayers. These companies are required to inform the Income Tax Department about transactions that exceed a certain threshold in the financial year. These transactions are covered under SFT under Section 114E of the Income Tax. This means that if an investor makes a profit by selling the fund, the fund house will forward the details of its account to the Income Tax Department. Interest information received on savings plans or accounts of a bank or post office reaches the income tax department.
Currently 16 types of transactions are being monitored
The Income Tax Department oversees 16 large transactions on behalf of taxpayers in the current fiscal year. Under this, the department collects more than 10 lakhs of cash, purchases of shares, investments in NCDs, or mutual funds or equity repayments in a savings account in one year. In addition, the Income Tax Department collects information on payment of credit card bills of over Rs 1 lakh in one year and payment of Rs 10 lakh bills in any manner during the entire financial year.
If many jobs are changed then there will be many pattern-16s
If you change multiple jobs, you may have multiple pattern-16s. Since there are different Form-16s, Part A accounts for the TAN of different companies and the TDS that is deducted on it. Each company cuts its own TDS. So the TDS reduction in different pattern-16s is different. In such a situation, there is a rule for adding TDS. That is, all the companies that deduct TDS in one financial year, put all of those TDSs together. This shows how many TDS cuts have been made in a year.